Wednesday, August 29, 2018

Stockman Slams The Greatest Fake Bull Ever

ORIGINAL LINK

Submitted by David Stockman via Contra Corner blog,

Now that the raging robo-traders have tagged a double top at 2897 on the S&P 500 it is worth remembering that the booming stock market is the greatest Fake Bull in history. It is entirely a function of massive central bank liquidity injections into the financial system that have transformed Wall Street and other global trading venues into virtual gambling casinos.

Indeed, in today's fraught environment it can be well and truly said that the chartmonkeys have become deaf, dumb and blind to everything happening on Planet Earth external to the gaming tables where they slosh around in their cups. After all, to use the latest evidence, what could be more indicative of a political system fixing to implode than this weekend's utterly phony and disgustingly undeserved deification of the late Senator John McCain?

Folks, peek under the surface of the media hagiography. This isn't about the man's alleged heroism, virtues and service to America----because there were none of the above, as we will elbaorate tomorrow.

John S. McCain III came from the loin of Leviathan (two generations of Warfare State admirals) and spent every single day of his adult life as an Imperial City payroller, peddling more war, war always and war everywhere. His stock-in-trade was regime change, boots-on-the-ground, spy-state supression of domestic liberty and hegemonic demonization of any nation (Russia, Iran, Syria, Iraq, etc) that did not bend to Washington's dictates.

He was also the ultimate enabler of the Bailout State and rogue central bank money printing spree that incepted in September 2008 when McCain suspended his presidential campaign to return to Washington to address the so-called financial crisis.

But rather than standing tall for free markets and fiscal rectitude per the legacy of his illustrious precedessor, Barry Goldwater, he abjectly capitulated to expediency and embraced lock, stock and barrel the odious TARP legislation and the Fed's servile
bailout of  AIG, Morgan Stanley, Goldman Sachs and the lesser Wall Street gambling houses.

So let's call a spade a spade. When Dem Congressman John Lewis, who was Martin Luther King's once-upon-a-time top lieutenant in the struggle against Jim Crow and the Vietnam War in the 1960's, tweets that McCain was a "warrior for peace" the wish to barf is understandable but not the right response.

What it really tells you is that the hideously overwrought praise for McCain is just Washington code-speak; it's a respectable way to vent the rabid hatred of Trump that suffuses the length and breadth of the mainstream media and the inner circumference of the Washington beltway---save for a few GOP cowboys sent to Congress on the Donald's red state coat-tails.

Given that truth, why in the world would you embrace a financial bubble that is utterly dependent upon politics and the dispensations of the fiscal and central banking branches of the state?

After all, there is no economic basis whatsoever for the Dow at 26,000, NASDAQ at 8,000 and the S&P 500 grasping for 2900. Those are just round numbers on the casino charts, being held aloft only by the fatuous presumption that Washington will never let the bubble burst.

That is to say, unlike April 2000 or September 2008 we are putatively at the end of cycles and therefore financial history because, why?

Apparently, because Donald Trump, Mitch McConnell, Nancy Pelosi, Chuckles Schumer and Jay Powell have your back!

And that is not hyperbole. Not when every vestige of sound money, honest price discovery and financial discipline has been eviscerated. What's left is nothing more than the will of Washington politicians to deliver free lunch windfalls to Wall Street speculators and the 1% and 10% who own 45% and 85% of the stock market, respectively.

We'll take the unders on that proposition, however, because here's the news flash that Wall Street is insouciantly ignoring. To wit, Washington is on the brink of an extraconstitutional coup aimed to forcibly remove from the Oval Office a vicious street figher and unstable megalomaniac, who is viewed by virtually one and all among the Washington political class as an illegitimate and detestable interloper.

And believe us, now that the rogue gendarme of Mueller and the US Attorney for the Southern District of New York have the Donald's inner trio of scumbags by the shorthairs---Michael Cohen, David Pecker and Allen Weisselberg---there is no stopping their final push for the kill.

But Donald J. Trump will not go down without bringing the house down.

And by that we mean he will prosecute his Trade War on the world until the global economy buckles. He will also add fuel to the fire with his Sanctions War against any malefactors (such as Russia, Iran and any nation which trades with them) who give lip to Imperial Washington.

And most destructively of all, he will cluelessly push his Deficit Finance War against America's born and unborn taxpayers until the bond pits fracture from the inflow of $2 trillion per year of government debt that either the Fed is dumping or Uncle Sam is issuing.

Moreover, the Wall Street's canard that all of this Trumpian strum-und-drang is just the art-of-the-deal at work could not be more pitifully mistaken. The Donald understands virtually nothing about the $17 trillion global trading system or the nation's baked-inthe-cake $20 trillion of new debt over the next decade on top of the $21 trillion we already have.

So he will push things to the breaking points, and become ever more desperate, reckless and impulsive as the Deep State, the Dems and most of the GOP's vast legion of Congressional time-servers close in on his remaining toehold on power.

Just consider today's PR stunt of a "deal" with Mexico on the NAFTA trade arrangement, which no longer bears the name.

As we told Neil Cavuto on Fox Business, the auto workers of Mexico will be thanking the Donald for the big raise to $16 per hour; and the Trade Nanny in Washington, and her flock of lawyers and consultants, will be more than happy to get down on their hands and knees with a magnifying glass to enforce the "deal".

That is, to examine every make and model of auto coming from Mexico to insure that among its 5000 pounds of metal, glass, rubber, plastics, fibers, copper and silicon and 30,000 part numbers that exactly 45% was made with labor at $16 per hour or more, and 75% of the content by dollar amount originated in the USA or Mexico.

Yes, that's a boon for the beltway trade policy apparatchiks and racketeers and for Mexican labor, but has absolutely nothing to due with MAGA. American labor embodied in auto parts and assembly ranges from $25/hour to $60/hour on a fullyloaded basis (including benefits and payroll taxes). On the margin, it still can't remotely compete with Mexico---even under the Donald's new country-of-origin and labor cost strictures.

That's because, as we must keep reminding, the Fed has inflated domestic costs, prices and wages to a fare-the-well during the past 30 years when an honest monetary system would have caused their persistent deflation.

Indeed, the Mexican negotiators were literally begging---"don't throw us in that briar patch, Brer Donald"!

And all to solve a NAFTA problem that had nothing to do with the terms of the 1993 agreement, and everything to do with a central bank financial repression that the Donald wants to make dramatically worse.

Yet when the politicians fall on each other with malice aforethought during the next two years, what kind of Economy lingers beneath the greatest ever bubble on Wall Street?

The truth is, it is a beleaguered one---only thinly obfuscated by a veneer of Wall Street spin and Trumpian braggadocio.

At today's S&P 500 close of 2897, the index is up 85% from the pre-crisis peak of 1562 in October 2007. Even when you strain the inflation out of the index (and ignore the benefit of @2% annual dividend payouts, too) the gain since the last peak nearly 11 years ago is 55%.

Now then, what do we see on main street relative to the 55% inflation-adjusted gain in the S&P index?

As we told Cavuto, what you see above all else is a 1.2% gain in the real median household income. Over 11 years!

That's right, notwithstanding the alleged near-death experience of Wall Street between September 2008 and March 2009, the real value of the stock market has risen approximately 45X more than real median incomes since the pre-crisis peak.

In fact, as dramatically conveyed in the blue line in the chart below, real median household income has gone exactly nowhere since the turn of the century.

And there is a lot more of the same. For instance, if there are two fundamental ingredients of the main street economy, they are industrial production and labor hours deployed.

The latter number strains out the flakey measurements of the U-3 unemployment rate, which ignores the 96 million adults the BLS in its wisdom deems to be not in the labor force; and the former captures the heart of GDP without all the Commerce Department's dubious imputations ($1.7 trillion of "imputed" homeowners rent on their own homes) and the bloated "output" of the health, education and social service sectors, which essentially are parasites on taxpayers and Uncle Sam's credit card, anyway.

That is, these are core physical measures and are thus comparable to inflation-adjusted stock prices and household incomes. Yet industrial production(orange line) is up just 3.3% during the entire last 11 years, and total labor hours deployed from A to Z in the US business economy have expanded by merely 5.4%.

Indeed, consider that at the June 2007 pre-crisis economic peak about 237 billion US labor hours were consumed at an annualized rate. Yet in Q2 2018 that number had only crept up to only 254 billion.

So how do you get a 55% gain in the inflation-adjusted stock market index on just 5.4% more labor input?

You don't, unless there has been a spectacular explosion of productivity, which there has most surely not been.

What we are saying, of course, is that the Wall Street stock indices have vastly out-run the meager gains in the main street economy since the pre-crisis peak; and that at this late stage of the business cycle---merely 10 months from the prior record---there is absolutely no plausible risk/reward equation left.

That's because earnings will plummet in the next recession---by 40% or more if history is any guide. And that's likely to be conservative in view of the elephant in the casino that Wall Street stubbornly refuses to acknowledge.

To wit, back in June 2007, the S&P 500 earnings peaked at $85 per share, but that reflected fully $55 per share of after-tax interest expense. Fast forward to the LTM period ending in December 2017 when earnings per share posted at $110 per share, but reflected only $19 per share of after-tax interest expense.

In other words, more than 100% of the gain over the past 11 years was due to the drastic financial repression of the central banks and its impact on corporate interest expense.

Yet the central banks of the world---led belatedly by the Fed---have made an epochal pivot to QT (quantitative tightening) and interest rate normalization, even as the value of the interest expense deduction has been reduced to chump change owing to the new effective tax rate of about 15%.

So interest expense is marching back up the hill, and it's not remotely priced-in---not any more than the next recession or the generational fiscal catastrophe that looms in the 2020s as 80 million baby-boomers pile onto the social security/medicare wagon.

Still, consider the fact that in the June 2007 quarter, the inflation-adjusted aggregate net income of the S&P 500 companies was $240 billion, and during Q2 2018 it was $280 billion on an apples-to-apples basis (i.e., gross of the lower tax rate ).

That's a 15% gain in real profits over nearly 11 years---a figure that self-evidently does not remotely warrant a 55% gain in the S&P 500 index.

Stated differently, even with the new tax rate---which represents only a one-time stepchange in profits, not a permanent growth factor---aggregate net income (not per share) came in at $295 billion for the quarter ending in June. At the same time, those earnings reflected collective corporate balance sheets sporting some $7 trillion of stated debt and related liabilities.

That is to say, even a 150 basis point rise in the corporate interest expense from here will cost the S&P 500 about $105 billion pre-tax, and about $90 billion after-tax per quarter!

We don't think that takes a lot of figurin'. Today the S&P 500 sported a market cap of more than $24 trillion. If  interest-normalized net income annualizes to $800 billion, that means the market is trading at 30X earnings---before any recession impact!

As we said, there has never been a greater Fake Bull in recorded history.

And there is not a snowball's chance in the hot place that Washington's impending political bloodbath can keep Wall Street's fantastic bubble aloft much longer.



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Facebook Engineer's Stunning Admission: "We Tear Down Posters Welcoming Trump Supporters"

ORIGINAL LINK

On Tuesday morning, President Trump lashed out at Google, with his remarks later broadening to include Twitter and Facebook, accusing it of "rigging" search results by presenting only results "from National Left-Wing Media" and accused "Google & others are suppressing voices of Conservatives and hiding information and news that is good."

Those companies "better be careful because you can’t do that to people," Trump said later in the Oval Office. "I think that Google, and Twitter and Facebook, they are really treading on very, very troubled territory and they have to be careful. It is not fair to large portions of the population.”

Google immediately responded, condemning Trump's charge, and claiming that "Search is not used to set a political agenda and we don’t bias our results toward any political ideology."

And yet, as so often happens, in Trump's crude delivery, the politically incorrect truth was once again found.

According to a memo posted on Facebook's internal message board titled "We Have a Problem With Political Diversity", and which was published by the New York Times, senior Facebook engineer Brian Amerige confirmed Trump's allegation writing that "we are a political monoculture that’s intolerant of different views" and shockingly admitted that "we claim to welcome all perspectives, but are quick to attack — often in mobs — anyone who presents a view that appears to be in opposition to left-leaning ideology. We throw labels that end in *obe and *ist at each other, attacking each other’s character rather than their ideas."

The scathing indictment of Facebook's liberal "mono-culture" continues:

We do this so consistently that employees are afraid to say anything when they disagree with what’s around them  politically.​ HR has told me that this is not a rare concern, and I’ve personally gotten over a hundred messages to that effect. Your colleagues are afraid because they know that they — not their ideas — will be attacked. They know that all the talk of “openness to different perspectives” does not apply to causes of “social justice,” immigration, “diversity”, and “equality.” On this issues, you can either keep quiet or sacrifice your reputation and career.

"These are not fears without cause" Amerige writes, and continues the stunning disclosure of the company's biased culture, "Because we tear down posters welcoming Trump supporters. We regularly propose removing Thiel from our board because he supported Trump. We’re quick to suggest firing people who turn out to be misunderstood, and even quicker to conclude our colleagues are bigots. We have made “All Lives Matter” a fireable offense. We put Palmer Luckey through a witch hunt because he paid for anti-Hillary ads. We write each other ad-hoc feedback in the PSC tool for having “offensive” ideas. We ask HR to investigate those who dare to criticize Islam’s human rights record for creating a “non inclusive environment.” And they called me a transphobe when I called out our corporate art for being politically radical.

* * *

Amerige wasn't alone in his criticism of Silicon Valley's liberal bias, and as the NYT reports, since the post went up, "more than 100 Facebook employees have joined Mr. Amerige to form an online group called FB’ers for Political Diversity." The aim of the initiative, according to Mr. Amerige’s memo, is to create a space for ideological diversity within the company.

The new group has upset other Facebook employees, who said its online posts were offensive to minorities. One engineer, who declined to be identified for fear of retaliation, said several people had lodged complaints with their managers about FB’ers for Political Diversity and were told that it had not broken any company rules.

According to the NYT, the activity is a rare sign of organized dissent within Facebook "over the company’s largely liberal workplace culture." While the new group is just a sliver of Facebook’s work force of more than 25,000, the company’s workers have in the past appeared less inclined than their peers at other tech companies to challenge leadership, and most have been loyalists to its chief executive, Mark Zuckerberg.

It gets better: within Facebook, employees have argued over the decisions to ban certain accounts while allowing others. At staff meetings some workers have repeatedly asked for more guidance on what content the company disallows, and why.

The dispute over employees’ political ideology arose a week before Sheryl Sandberg, Facebook’s chief operating officer, is scheduled to testify at a Senate hearing about social media manipulation in elections. A team helping Ms. Sandberg get ready for the hearing next Wednesday has warned her that some Republican lawmakers may raise questions about Facebook and biases, according to two people involved in the preparations.

In May, Facebook announced that former Senator Jon Kyl, an Arizona Republican, would lead an inquiry into allegations of anticonservative bias on the social network, where new employees supposedly go through training that describes how to have respectful conversations about politics and diversity, and yet fail to achieve any results.

* * *

As for the outspoken Facebook engineer, Amerige - who started working at Facebook in 2012 - said on his personal website that he followed philosophical principles laid out by the philosopher and writer Ayn Rand. He posted the 527-word memo about political diversity at Facebook on Aug. 20.

On issues like diversity and immigration, he wrote, “you can either keep quiet or sacrifice your reputation and career.”

Amerige proposed that Facebook employees debate their political ideas in the new group — one of tens of thousands of internal groups that cover a range of topics — adding that this debate would better equip the company to host a variety of viewpoints on its platform.

As for the prevailing bias withing Facebook, Amerige's conclusion is simple: "This is not okay. Not just for our internal culture, but for our own viability as a company." 

"While the problem isn’t unique to us, we are entrusted by a great part of the world to be impartial and transparent carriers of people’s stories, ideas, and commentary. Congress doesn’t think we can do this. The President doesn’t think we can do this. And like them or not, we deserve that criticism" he admits.

"We are blind to and dismissive of what people beyond our walls (let alone even within our walls) think about complex issues that matter. I’ve been here for nearly 6.5 years and this has gotten exponentially worse in the last 2."

Or ever since Trump became president.

Amerige's full memo is below (pdf link)



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Trader Taunts Market's "Conscious Willing Suspension Of Disbelief"

ORIGINAL LINK

With Nasdaq now set for its best Augusts since the year 2000 (the dead cat bounce peak right before the 74% plunge to 2002) and stocks soaring in the face of dismal macro data, slumping housing, a collapsing yield curve, lower bond yields, and now a rising VIX, one wonders - aside from the ubiquitous corporate buybacks - is driving this hysteria at the vinegar strokes of the longest bull run ever.

Former fund manager and FX trader Richard Breslow explains it simply - in a word, nothing.

Via Bloomberg,

I was sent a technical piece yesterday from someone who doesn’t believe news should figure at all into the analysis. It’s an approach I have an enormous amount of sympathy with. This is a rare time that it’s questionable to stick with that view. As I read it, all I could think of was Samuel Taylor Coleridge. Because the only way to navigate these markets is to engage in a conscious willing suspension of disbelief. You read the news and have to accept the surreal to have any hope of understanding what is going on.

Even the news-oblivious charts have figured out that normal rules don’t apply. And that’s why they have been working so well.

The gist of the piece was that just about every asset it looked at was doing one of two things. Approaching resistance where it was expected to fail or had failed at resistance and was headed the other way where it would do the same. The world is in a state of flux and the last word that should be found in any piece of market analysis is "definitive."

Beware the person telling you something has bottomed or peaked unless it includes the “for now” tag line. Ten-year U.S. Treasuries once again got close to their recent extreme at 2.8% and failed. But does anyone think this means the path of least resistance is the moon?

Remember how excited everyone was yesterday when the euro “decisively” retook 1.17 versus the dollar? That was meant to be the signal that an assault upon the elusive 1.18 level was on the cards. I’ve yet to talk to a buyer this morning. Even with the pair down only small.

My working theory is that the confusion sown by the ebullient stock market has every other asset uncertain and conflicted. That’s a danger. Sometimes certain sectors just have to go their own way. And while models take a long time to figure this out, we carbon entities can sometimes out-think them. We should take advantage of it while it lasts.

Emerging market currencies have had a nice two-week recovery. They are failing at the first line of defense. Emerging market equities look better but only if they can motor further from here. Weaker currencies as a reason to buy equities doesn’t apply in this instance. EUR/CHF is down after spending all of one day above its first significant retracement level. The dollar versus the Mexican peso is back above 19. Wasn’t the big Nafta non-announcement meant to put 18.5 in the rear view mirror? What were people thinking when they bought rand on a 13-handle yesterday morning?

That old game where you play which of these don’t belong with the others is a lot of fun. Sometimes, however, being able to choose correctly is a very valuable tool. Spoiler alert: it’s the stocks.

Aside from them we are in a risk-off environment. And must play things from that perspective. We all just get repeatedly confused because we’ve been trained to think the world lives or dies based on how much trickle down we are led to expect from a rising S&P 500.



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Tuesday, August 28, 2018

China Hacked Clinton's Private Email Server: Daily Caller

ORIGINAL LINK

A Chinese-owned firm with operations in Washington D.C. hacked Hillary Clinton's private server "throughout her term as secretary of state and obtained nearly all her emails," reports the Daily Caller's Richard Pollock. 

The Chinese firm obtained Clinton’s emails in real time as she sent and received communications and documents through her personal server, according to the sources, who said the hacking was conducted as part of an intelligence operation.

The Chinese wrote code that was embedded in the server, which was kept in Clinton’s residence in upstate New York. The code generated an instant “courtesy copy” for nearly all of her emails and forwarded them to the Chinese company, according to the sources. -Daily Caller

During a July 12 House Committee on the Judiciary hearing, Texas Rep. Louie Gohmert (R) disclosed that the Intelligence Community Inspector General (ICIG) found that virtually all of Clinton's emails from her homebrew server were funneled to a "foreign entity." Gohmert did not reveal the entity's identity - however he said it wasn't Russia. 

A government staff official briefed on the ICIG's findings told the Daily Caller that the Chinese firm which hacked Clinton's emails operates in Washington's northern Virginia suburbs, and that it was not a technology firm - but a "front group" for the Chinese government. 

Warnings ignored

Two ICIG officials, investigator Frank Ruckner and attorney Janette McMillan, repeatedly warned FBI officials of the Chinese intrusion during several meetings, according to the Daily Caller, citing a "former intelligence officer with expertise in cybersecurity issues who was briefed on the matter." 

Among the FBI officials warned was Peter Strzok - who was fired earlier this month from the agency over anti-Trump text messages he sent while spearheading an investigation of Trump's 2016 campaign. Strzok did not act on the ICIG's warning according to Gohmert - who added that Strzok and three other top FBI officials knew about an "anomaly" on Clinton's server

In other words; Strzok, while investigating Clinton's email server, completely ignored the fact that most of Clinton's emails were sent to a foreign entity - while IG Horowitz simply didn't want to know about it. 

The Intelligence Community Inspector General (ICIG) found an “anomaly on Hillary Clinton’s emails going through their private server, and when they had done the forensic analysis, they found that her emails, every single one except four, over 30,000, were going to an address that was not on the distribution list,” Republican Rep. Louie Gohmert of Texas said during a hearing with FBI official Peter Strzok. -Daily Caller

Gohmert: “It was going to an unauthorized source that was a foreign entity unrelated to Russia.

Strzok admitted to meeting with Ruckner but said he couldn't remember the "specific" content of their discussion. 

“The forensic examination was done by the ICIG and they can document that,” Gohmert said, “but you were given that information and you did nothing with it.”

Meanwhile, four separate attempts were also made to notify DOJ Inspector General Michael Horowitz to brief him on the massive security breach, however Horowitz "never returned the call."

Internal Pushback 

In November of 2017, IG McCullough - an Obama appointee - revealed to Fox News that he received pushback when he tried to tell former DNI James Clapper about the foreign entity which had Clinton's emails and other anomalies. 

Instead of being embraced for trying to expose an illegal act, seven senators including Dianne Feinstein (D-Ca) wrote a letter accusing him of politicizing the issue. 

McCullough on @HillaryClinton emails: "Even if the information isn't marked properly when it's disseminated, it's still classified." #Tucker pic.twitter.com/b3E7qH0zvz

— Fox News (@FoxNews) November 29, 2017

"It's absolutely irrelevant whether something is marked classified, it is the character of the information," he said.

McCullough said that from that point forward, he received only criticism and an "adversarial posture" from Congress when he tried to rectify the situation.

"I expected to be embraced and protected," he said, adding that a Hill staffer "chided" him for failing to consider the "political consequences" of the information he was blowing the whistle on. -Fox News

30,000+ Hillary Clinton emails were sent to an unauthorized foreign entity, not #RussianHacking

Obama was one of 13 individuals who sent AT LEAST 100 emails to Hillary

At least 100 Obama emails are in the hands of a foreign entity 👇 Where's the outrage?https://t.co/lDld6WLFDh https://t.co/puODFRM9En

— Katica (@GOPPollAnalyst) July 14, 2018


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"Very Serious Situation": Trump Accuses Google Of Rigging Search Results Against Him

ORIGINAL LINK

In an especially early tweet storm (starting before 6am), Donald Trump accused Google of rigging its search results to display only left-wing and negative stories about him, calling it "a very serious situation” that “will be addressed."

"Google search results for ‘Trump News’ shows only the viewing/reporting of Fake New Media. In other words, they have it RIGGED, for me & others, so that almost all stories & news is BAD, Fake CNN is prominent. Republican/Conservative & Fair Media is shut out. Illegal," Trump said in his latest claim of bias by the media. 96% of results on “Trump News” are from National Left-Wing Media, very dangerous."

Google search results for “Trump News” shows only the viewing/reporting of Fake New Media. In other words, they have it RIGGED, for me & others, so that almost all stories & news is BAD. Fake CNN is prominent. Republican/Conservative & Fair Media is shut out. Illegal? 96% of...

— Donald J. Trump (@realDonaldTrump) August 28, 2018

Trump may have a point: a generic search for "Trump" in Google's news shows links to CNN, NYT, NPR, VOX, the New Yorker and Washington Post - all what are considered  in that order

Then, repeating an accusation he has made previously, Trump tweeted that "Google & others are suppressing voices of Conservatives and hiding information and news that is good. They are controlling what we can & cannot see. This is a very serious situation-will be addressed!" It wasn't clear just what this "addressing" would entail.

....results on “Trump News” are from National Left-Wing Media, very dangerous. Google & others are suppressing voices of Conservatives and hiding information and news that is good. They are controlling what we can & cannot see. This is a very serious situation-will be addressed!

— Donald J. Trump (@realDonaldTrump) August 28, 2018

Trump's assault on Google follows Trump's Aug. 24 claim that social media “giants” are "silencing millions of people." As Twitter has recently admitted, it has indeed been shadowbanning and otherwise ghosting various conservative accounts, which has resulted in CEO Jack Dorsey being invited to testify before Congress on the company's policies.

Social Media Giants are silencing millions of people. Can’t do this even if it means we must continue to hear Fake News like CNN, whose ratings have suffered gravely. People have to figure out what is real, and what is not, without censorship!

— Donald J. Trump (@realDonaldTrump) August 24, 2018

Ironically, as Bloomberg reminds us, in July Trump lashed out at the European Union in response to a record $5 billion fine against Google over its mobile phone operating system, calling Google one of America’s “great companies.”



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Monday, August 27, 2018

Defending the Digital Commons: A Left-Libertarian Critique of Speech and Censorship in the Virtual Public Square

ORIGINAL LINK

By Andrew Austin

Is it now progressive to argue that essential liberties and rights should yield to private corporate power? I ask because the notion that the freedom to transmit and receive information is properly limited on the grounds that businesses profit from the control of ideas has always struck me as a rightwing position: liberty exists beyond the government—or in spite of it. In the rightwing view, the government is not something that should necessarily defend the civil rights of individuals in all circumstances, but something that, in its neutrality, perpetuates the privileges of elites as a class. Yet an argument has emerged on the left appealing to the supposed right of private corporations to legally censor speech as justification for suppressing objectionable expressions and opinions.

The case that prompts this essay is the suppression of Alex Jones and InfoWars (its podcasts, webcasts, etc.), a fringe media outfit with a rightwing bent and an aggressive edge, by several large social media platforms—including Facebook, YouTube, Apple, and Spotify—for violating their policies against “glorifying violence” and “hate speech.” Jones is notorious for promoting what are popularly called “conspiracy theories,” such as the claim that the terrorist attack on the United States on September 11, 2001 was a false flag operation designed to bring the population under greater government control. Although Facebook, for example, has been aggressively censoring pages and posts for more than a decade, Jones’ infamy has drawn attention to the practice. “Glorifying violence,” Facebook explains in a statement released to the media, “violates our graphic violence policy.” “Hate speech” is evidenced by “dehumanizing language to describe people who are transgender, Muslims and immigrants.”

Echoing the gist of Herbert Marcuse’s 1965 essay “Repressive Tolerance,” many on the left are justifying the censorship of Jones as politically necessary and ethically reasonable on the grounds that certain forms of speech are harmful and, furthermore, that there is no right to racist and offensive speech. Marcuse argues for “liberating tolerance” from the liberal values of equality and neutrality, condemning “what is proclaimed and practiced as tolerance” of a diversity of opinion as a framework “serving the cause of oppression.” He proposes a “discriminating tolerance,” which “would include the withdrawal of toleration of speech and assembly from groups and movement which promote,” for example, “discriminating on the grounds of race and religion.” We can see this in practice today on college campuses where students organize to disrupt speakers and events. Marcuse reads John Stuart Mill as something of a communitarian, as believing that “liberty must be defined and confined by truth,” which Marcuse assumes is on the left’s side. Marcuse argues for a dialectic that differentiates truth from falsehood, then suppresses the latter for the sake of emancipation from the administered, effectively totalitarian world of monopoly capitalism. The only tolerable tolerance is one that works towards liberation as Marcuse understands it, i.e. freedom from repression—and that work should exclude or curtail repressive speech.

Accusing Facebook CEO Mark Zuckerberg of making money from the “persistent undermining of democracy’s foundations,” Eric Alterman of The Nation, writing before Zuckerberg took action against Jones, complained that “Facebook has finally sought to scrub itself of phony profiles, but it continues to insist that it bears no responsibility for policing its content for lies.” Facebook should police Jones for what Alterman describes as “the horrific slander of so many people.” Writing for the Huffington Post, Anoa Changa of the Progressive Army quips, “Jones is not the hill any free speech advocate should want to die on.” “Defending Alex Jones’ right to exist on commercial platforms is about protecting white fragility,” she writes. “It has nothing to do with supporting the masses and our freedoms that may be compromised.” Sleeping Giants, “an organization dedicated to stopping racist, sexist, homophobic, xenophobic and anti-Semitic news sites,” tweeted “Massive kudos” to Apple for removing Jones’ podcasts. And Steve Redmond tweeted to his large following: “Apple, Facebook or any other private company has no legal responsibility to provide you a platform to spout whatever dumbass idea you want to sell. Do newspapers HAVE to offer editorial space for nazis? Answer: No.” 

The Left-Libertarian Tradition

The censorious attitude, however dressed up as strategy, is generally borne of an urge to control behavior and thought; it is a desire to substitute the judgment of one person or group for the judgment of others. It is essentially an authoritarian impulse, not in keeping with the spirit of the left—at least not the left as I know it: the libertarian left that came of age during the Sixties with the Free Speech Movement (1966-1970), a decade enjoying landmark Supreme Court rulings on the matter, including New York Times Co. v. Sullivan (1964), which sharply restricted libel, and Brandenburg v. Ohio (1969), which limited the government’s ability to censor inflammatory speech. That left rebelled against the notion that private tyrannies should censor arguments and images—arguments for equality and liberation, images of war and racism—or exclude people on the basis of color or creed. That left welcomed the opening of culture and society.

That left flowed from the Enlightenment tradition expressed in the work of Karl Marx, the father of modern class politics. To be sure, Marx was critical of the type of liberty that finds a right in individual control over capital, but he believed that censorship did more to further that type of liberty than undermine it. Marx is critical of the property right because of the class interests underpinning it; free speech, when protected, provides access to persuasion for those who do not command the machinery of prevailing ideology. Many on the left see free speech as an oppressive instrument of capitalism (and of racism, sexism, etc.). Those who call for censorship have the substance of their demand precisely backwards: rather than limiting the power of property to interfere with the free exchange of opinion and expression, they support subordinating speech to the property right.

The spirit of the left I pine for was on display at the 1963 March on Washington. A core demand of those who gathered at the Lincoln Memorial was equal access to public accommodations. The Civil Rights Act of 1964 was a response to their pleas. Title II of the Act prohibited discrimination on the basis of race at hotels, motels, restaurants, and other public places. Opponents maintained—and some still do—that prohibiting private businesses from excluding classes of customers, for whatever reason, violates the liberty of the business owners who have a right to do what they will with their property; a man’s business is an extension of the man’s castle (which, of course, is itself not really immune from government action). This was the position of the segregationist, who depended on government to uphold America’s version of apartheid by staying out of their affairs. My left wasn’t prepared to cede individual liberty (and dignity) to the interests of property owners who believed they had a right to pick and choose who they would let into their businesses.

Today, an iteration of this problem is playing out with respect to the struggles of homosexuals who seek equal treatment in public accommodations. Evangelical Christian Jack Phillips, of Masterpiece Cakeshop, refused to sell Charlie Craig and David Mullins a wedding cake because he objected to their lifestyle. For this, he was found liable for sexual-orientation discrimination by Colorado’s Civil Rights Commission (the Supreme Court overturned the CCRC’s ruling on the grounds that the state showed “hostility to a religion”). Phillips’ defenders contended that punishing bakers who do not wish to express ideas with which they disagree is an act of compelling speech. Others argued that a cake shop is a place of public accommodations and that homosexuals are, or at least should be seen as, members of a protected status in the same way blacks are. According to this view, the law should be concerned with protecting the right of a couple to express their sentiments, not with defending the notion that the owner of Masterpiece Cakeshop has the authority to censor them. That’s the spirit of the political and moral left I know. It hasn’t yet disappeared!

The Civil Rights Act of 1964 was helpful in clarifying a liberty because the right of black people to sit at lunch counters with white people is not explicitly stated in the US Bill of Rights. Perhaps a new federal law is needed to clarify the situation for homosexuals (given the limited character of the Supreme Court ruling, it would seem so). But do we really need a new civil rights act recognizing the right of people to express opinions on Facebook or YouTube? Doesn’t the First Amendment provide a standard for speech in America, one which the Supreme Court periodically clarifies—so far, by removing barriers to speech, not erecting them? 

Our First Civil Right

In light of recent events, we have to ask: Who is in charge of protecting our rights? As Vera Eidelman put it in July of this year, on the ACLU’s national page (“Facebook Shouldn’t Censor Offensive Speech”): “What‘s at stake here is the ability of one platform that serves as a forum for the speech of billions of people to use its enormous power to censor speech on the basis of its own determinations of what is true, what is hateful, and what is offensive.” What retiring Supreme Court Justice Anthony Kennedy described in 2017 as “a modern public square,” appears to be operating beyond the scope of the First Amendment, our first civil right, and many on the left seem unconcerned about this, believing, perhaps, their media and opinions are immune from corporate censorship. They are, instead, more interested in controlling political and cultural discourse through censorship, and less interested in changing minds through persuasion.

Make no mistake, this is a civil rights issue. Indeed, it is a human rights issue. When, in 2016, seventy plus advocacy groups — including the American Civil Liberties Union (full disclosure: I sit on the board of the Northeast Wisconsin chapter) and the Center for Media Justice — signed a letter addressed to Zuckerberg urging him to clarify his company’s policy regarding content removal, they emphasized how critical it is “that Facebook be a platform that supports the protection of human rights above all else and does not discriminately apply its policies on the basis of race, creed, national origin, gender, and/or sexual orientation.” Yet missing from the letter was any reference to Article 19 of the Universal Declaration of Human Rights (UDHR), which states: “Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.” This spirit appears again in Article 10 of the European Convention on Human Rights (ECHR), where an individual’s right to freedom of expression is protected, as well as the right to “hold opinions and to receive and impart information and ideas without interference by public authority.” Not only is speech the means for reporting human rights abuses but is per se a human right.

The capitalist class is in a bind. If it wishes to present capitalist society as a free society, then it has to maintain (at least the appearance of) the free speech right; illiberalism is the mark of the totalitarian state, of absolutism, fascism, and theocracy. And illiberalism is at its most blatant when exchange of opinions is sharply limited. The capitalist class risks rebellion if it abandons the republicanism that is the fig leaf of its rule. The position of the left should be to exploit the hegemonic utility of an open society in order to pursue a democratic politics that puts at its center the liberation of the worker from class oppression. Yet, many on the left have abandoned the politics of class for the politics of identity and find themselves appealing to the property right as a reason for curtailing the scope of the dialectic, a rhetoric testifying to the regressive character of identity politics. An effective coalition has formed between the capitalist elite and members of the working class in which some members of the latter beseech the former for restrictions on speech and expression. Although the logic of the argument from the left seeking such restrictions flows from Marcuse’s observation that capitalist power produces a subjectivity that fosters support for the objectives of racist imperialist power, censorship in practice functions to deepen that subjectivity by agreeing with capital that power is right to control information and opinion. 

A Right to Censor?

The notion that private companies have a right to censor has become so commonplace that social media suppression is usually portrayed as unextraordinary, an exercise in throat clearing. On August 7, Robby Soave, associate editor of Reason, a magazine of “free minds and free markets,” asserted that “[p]rivate companies are under no obligation to provide a platform to Sandy Hook conspiracy theorizing, 9/11 trutherism, or any of the other insane ideas Jones has propagated,” as if this were plain fact. Numerous times over the last several years debating this subject I have been asked (always rhetorically), “Are publishers compelled to publish everything that comes to them?” Steve Redmond is right: the answer is “No.” But not for the reasons Redmond and others think. 

The New York Times and The Washington Post are news organizations (ideally) operating with journalistic standards and an editorial policy. Academic journals have peer-review and a mission to search for the truth. But casting Facebook as a publisher with editorial control over content or peer review by a community of scientists misidentifies its character and function. The New York Times employs journalists or contracts with free-lancers to provide content with the understanding that it retains editorial control over the topics and substance of the work (this is not to say that editors for news organizations do not in effect censor the work of their employees—or that their employees do not self-censor in order to publish for that organization). Editorial choices reflect the audience the news organization wishes to appeal to. But, in the case of Facebook, it publishes no real content of its own; it is the users of the service who provide that, and their pages in effect represent a universe of opinions, appealing to a myriad of audiences. Content providers are not paid for what they provide; instead, they pay for the opportunity to share opinions, images, music, etc., by giving other businesses data about their preferences and insecurities. Facebook is a service where publications like InfoWars and Truthout share their articles and op-eds. It’s not a service like InfoWars or Truthout. The former situation is open. The latter comes with editorial control. 

A reasonable analogy would look something like a person reading a newspaper story at the City Café and then discussing what she learned or how it makes her feel with her friends who have joined her for breakfast. It’s not for the City Café to decide what she can read or discuss. Having a conversation at the City Café is not analogous to writing a column for a daily newspaper. Each table at the café is a forum. One can sit at the table if invited (“friended”) or sit nearby and eavesdrop (“lurking”). And, on Facebook, one doesn’t have to worry about somebody being so loud that she would interfere with the conversations of others. Indeed, Kennedy’s modern public square has theoretically as many rooms as there are people on the planet, plus groups and multiple accounts. Nobody can force anybody to hear or see anything. If one objects to content, they don’t have to be that person’s friend or follow the user. Would today’s left support City Café ejecting me on the grounds that I read and discussed the Communist Manifesto with a comrade at lunch? Should City Café boot me for my Che Guevara T-shirt?

I often wonder why Facebook monitors pages or, moreover, responds to complaints over content at all. My opinions expressed in a telephone call or a conference call or over email, etc., are none of AT&T’s business. Why should my page and its content be any of Facebook’s? Its algorithms can chug along collecting data about my preferences and insecurities without human intervention. It would be outrageous for AT&T to deny me service on the grounds that an employee objected to the content of my speech. If they don’t like what I am saying over their phone lines, then they can stop listening in on my conversations. If the people that I’m talking to don’t like the content of the conversation, then they can hang up on me. Likewise, nobody forces Facebook users to watch Alex Jones. If people don’t like Jones’ claim that scientists are putting chemicals in the water to turn “the friggin’ frogs gay,” or his rants about “interdimensional demons” accessing the brains of politicians, then they have a practically unlimited number of channels from which to choose (or they can choose no channel at all). 

One of the demands of that 2016 letter advocacy groups sent to Zuckerberg was for greater transparency from the social media giants. What are, for example, the rules Facebook uses in taking down pages and censoring content? (I will leave to the side the controversy surrounding security of user data and Cambridge Analytica.) It took until this spring for Facebook to reveal their censorship guide, what the company calls “community standards.” The big reveal was by Monika Bickert, Facebook’s head of Global Policy Management, who assured the public that the guidelines were designed to “strike the line between safety and giving people the ability to really express themselves.” What is it that Facebook is protecting people from? Among other things, according to the guide, graphic violence, hate speech, female nipples, misrepresentation, propaganda, and misinformation. “People need to feel safe in order to build community,” Facebook tells its users. “We are committed to removing content that encourages real-world harm, including (but not limited to) physical, financial, and emotional injury.” How one measures the subjective experience of emotional injury is not explained.

The guidelines instruct thousands of human censors whom Facebook calls “content moderators.” Who are they? What qualifies them to judge what is often complex politically, historically, and culturally-situated content? How do they operationalize the standards? What rubric do they use to distinguish parody from authentic assertions of truth? What is the underlying and emergent ideology that the censors use to target and excise content and remove content providers?

Part of the answer to some of these questions lies in grasping Facebook’s association with the power elite of the transatlantic order. On May 17, 2018, Katie Harbath, Facebook’s Director of Global Politics and Government Outreach, announced a partnership with the Atlantic Council, a NATO-backed D.C.-based think tank and part of the Atlantic Treaty Association. The Council’s Digital Forensic Research Lab will help Facebook rein in “fake news.” Led by Jon Huntsman, Jr., the current US ambassador to Russia, the Atlantic Council is made up of elites from a wide range of industries, including the arms industry, as well as ex-CIA and Homeland Security officials and operatives. As Glenn Greenwald of The Intercept reported in December of last year, Facebook has already admitted that it has been deleting accounts at the direction of the US and Israeli governments. What is emerging is a story of the digital commons, controlled by Silicon Valley, merging with components of the transatlantic security apparatus, using fear of “Russian meddling” in the US political system to render more true Julian Assange’s characterization of Facebook as the “most appalling spy machine” ever devised.

People Get Things Wrong

Contrary to Zuckerberg’s recent claim in an interview with Kara Swisher of Recode that Facebook doesn’t remove Holocaust denier or revisionist content (“I don’t believe that our platform should take that down because I think there are things that different people get wrong,” Zuckerberg said), one of the early targets of Facebook censorship, according to the Los Angeles Times in a story published this past April, was indeed Holocaust deniers and revisionists. Maybe Zuckerberg isn’t aware of that. However, the horror of the Holocaust and how to study this history is an area that troubles even experts in the field. Perhaps no other subject of debate is portrayed as so obviously deserving of gatekeeping as the Holocaust.

While Deborah Lipstadt feels comfortable drawing clear lines (Holocaust denial can only be antisemitism—scratch a historical revisionist and he bleeds denialism), other historians, such as Yehudah Bauer, are more skeptical. Who is correct in the debate over whether Hitler set out to murder Jews (the “intentionalists”) or hatched the “Final Solution” only after the Germans began to lose the war (the “functionalists”)? Is the Holocaust a species in a historical genre to be subjected to comparative analysis? Or is the Holocaust a singular, transcendent event, conceptually incomparable to any other moment in history? Is it a species of Holocaust denial to argue, as Peter Novick and Norman Finkelstein have, that the memory of the Judeocide functions to some degree as a commodity? How are historians to correct the record of the past if deviation from an official narrative is a punishable offense?

The best—at least the most democratic—way to settle disputes is to allow questions to be asked and researched, which may involve challenging “settled” questions, and then freely disseminating the findings—even if those findings contradict ideological projects based on particular narratives. Government or corporate endorsed or mandated accounts may interfere with the historian’s work. However, mindful of the authority of expertise, on the plane of human rights, the non-historian is the equal of the historian; the historian cannot enjoy freedoms the non-historian is denied. More than this, the non-historian did not subscribe to standards of reputation that would draw punishment for misrepresenting sources (i.e. academic misconduct). Awkward as his words were, Zuckerberg seemed to be appealing to the virtue of unencumbered truth-seeking, seeing Holocaust deniers as those who get history wrong while expressing reluctance to assume their intent. Some would say Zuckerberg is being too charitable. But perhaps he is somewhat reticence to substitute his judgment for the judgment of others. Unfortunately, Facebook is not.

Of course, the Holocaust happened, and denying it in its totality is absurd, but how are censors who are not trained in history, and specializing in this field, to differentiate between historical study and debate, anti-Semitic propaganda, and defending ideological positions from challenge by name-calling? Given guidelines, white supremacist pages may be banned for advancing white nationalism and referencing fascist and Nazi doctrine on the grounds of emotional injury. Nazism’s offensive character makes that leap easy. Peddling Hitler’s Mein Kampf would likely draw a censor’s attention. One would have to have a particular reputation to safely discuss the book and its contents. Thus, the censor proceeds on the basis of identity, a quick read of good or bad intention, a move involving the imposition of ideology. I am an ardent opponent of authoritarianism and fascism, but I am more than uncomfortable with Facebook determining the legitimacy of various points of view, to put its thumb on the scales of weighty historical matters, as if I cannot judge such things for myself. As if Facebook is up to that task. I am reminded of Noam Chomsky’s powerful sentiment, made in the context of his own free speech struggle on this very issue, that it is a disservice “to the memory of the victims of the Holocaust to adopt a central doctrine of their murderers.” 

One of the reasons discourse on the Holocaust is so carefully guarded is what it might inspire. It doesn’t appear that Facebook recognizes the imminent lawless action test established by Brandenburg v Ohio, in which speech is an incitement to violence when violence is both imminent and likely. Very little could be censored on Facebook (obscenity excluded) if this were the standard. Instead, it appears Facebook may be using a standard more in the spirit of Article 20 of the International Covenant on Civil and Political Rights (ICCPR), which states: “any advocacy of national, racial or religious hatred that constitutes incitement to discrimination, hostility or violence shall be prohibited by law.” This is a difficult standard to apply in law, let alone to speech on social media platforms. Indeed, it even runs up against the ICCPR’s own Article 19 concerning free speech (which has caused the United Nations Human Rights Committee to admonish governments for criminalizing defamation). 

The anti-Semitic hoax The Protocols of the Elders of Zion likely played a role in inciting pogroms against Jews. The Pizzagate conspiracy theory, promoted by Alex Jones (although it did not originate with him and he later apologized for disseminating it), was associated with a shooting at Comet Ping Pong restaurant. Antiabortion politics may motivate attacks on reproductive health services. Texas Senator Ted Cruz pressed Zuckerberg during his congressional testimony concerning Facebook’s actions in pulling Christian-based antigay and antiabortion pages for “bullying” and “hate speech.” However, many of the censored pages did not contain language indicating incitement, but rather presented ideas that perhaps could provide material for violent motives. But this can be said of a lot of speech and expression (recall the satanic ritual abuse scare in the 1980s in which heavy metal music was blamed for inspiring murder and suicide). There is a problem with determining responsibility here.

Defamation, a concept originating in the English common law, spread far and wide through British imperialism, also bears on this debate. Families or students and teachers of the Sandy Hook massacre, in which twenty children and six staff members were gunned down by 20-year old Adam Lanza, are suing Alex Jones and some of his associates for claiming that the mass shooting was a hoax (Jones’ legal defense is asking the court to dismiss the suit on the grounds of press freedom). Although Facebook and others are not appealing to the defamation suit as the reason for their action, the corporate media rarely fails to mention it in its indictments of Jones and, for some in the debate, the existence of the suit is sufficient to justify suppressing Jones and InfoWars, the presumption of responsibility notwithstanding. 

This argument is dangerous, both in its alchemy—it turns allegation into guilt—and by assuming the legitimacy of the concept of defamation, now being contested on a planetary scale as different cultural standards clash in the context of globalization. Indeed, the concept of defamation has experienced such severe inflation in Europe that engaging in irreligious criticism, a courageous practice we can thank for the secularism the West enjoys, risks a criminal complaint, a development starkly at odds with the tradition of the United States, where speech is enshrined in its Bill of Rights. We should be very concerned about such an expansive concept of defamation in operation in a public square that lacks the democratic machinery to seek a redress of grievances. Such capacious notions of defamation (as well as incitement, another legacy of English common law) are being socialized globally, contradicting hard fought human rights established by international conventions, a development that hardly fazes a left increasingly willing to sacrifice free expression on the altar of political correctness.

Making a Whip for Your Back

Corporate suppression of speech may feel fine when it’s Alex Jones or Warriors for Christ who are being censored. But what happens when Facebook suppresses speech with which the left identifies? Leftwing news and opinion outlet Truthout routinely publishes stories critical of police officers (I’ve published a couple of them). Suppose Blue Lives Matter, a countermovement seeking to protect police officers by defining threats to their safety and reputation as “hate speech,” convinces Facebook that Truthout is peddling hate and Facebook removes Truthout for violating its “community standards”? What if Black Lives Matter is deemed as, in the words of Donald Trump’s attorney and former mayor of New York City Rudolph Giuliani, “inherently racist”? Will the left argue, as it has in the Alex Jones case, that, as a private commercial firm, Facebook should have the right to determine what constitutes hate speech and de-platform leftwing publishers who post stories critical of police officers? 

In fact, Facebook doesn’t just censor rightwing pages. That 2016 letter to Zuckerberg I earlier referenced cites several acts of censorship that affect the left: the deactivation of Korryn Gaines’ account, which included the removal of the video documenting the police slaying of Philando Castile; the removal of reports of suppression of indigenous resistance, for example the Dakota Access pipeline protests; the removal of black activist sites, such as Black Lives Matter, and even reports of Black activists’ content being removed; the disabling of Palestinian journalists’ accounts (which, the letter notes, followed Zuckerberg’s meeting with the Israeli Prime Minister). Many more examples could be provided, one of the more notable instances occurring just this month when Facebook took down teleSUR’s English language page (a media group rightwing outlet Breitbart labels “communist propaganda”), claiming, without further explanation, the left-leaning Latin American news network violated the social media platform’s terms of service (Facebook restored the page a few days later).

Don’t Enclose the Commons

Excepting relevance (which, in case of social media, is irrelevant given theoretically infinite fora and the freedom to choose among them), freedom of the mind depends on an ability to share ideas through media that is neutral on the matter of content. As with InfoWars, nobody forces people to read Truthout. Free speech must come with machinery than does not work to limit ideas but instead operates to limit those who would limit ideas. Just as we cannot allow a student to disrupt a lecture or take a classroom discussion off topic, or a heckler or mob to shut down a political discussion, or an antifa to punch a Nazi in the nose, or spammers or hackers to shut down a website, we must object to Mark Zuckerberg or Susan Wojcicki (of YouTube) substituting their judgment for ours by limiting the exchange of ideas. They invite us, using infrastructure we make possible, to provide content for their service in a way that allows the proliferation of fora (pages and channels) that cater to a myriad of tastes. If they can’t administer this public service without trampling on the Bill of Rights or rational international conventions, then perhaps society needs to make different arrangements.

The argument that Facebook is not censoring Jones but following its rules (which the corporate media pressures social media platforms into doing, thereby limiting competition) presupposes the rules are not censorious. We hear this qualification: it is not legal censorship. But the argument that Facebook cannot “technically” censor Jones because Facebook is a private company and therefore cannot actually censor begs the question. If the argument adds that only the government can censor, then it adds a tautology—it substitutes a definition for an argument. The problem is with the idea that the First Amendment only protects citizens against restrictions on their speech by the government and government actors: it treats government action only in terms of commission, not omission; that is, it leaves out the government’s duty to respond when private entities deny civil rights. This returns us to the question of what the left’s position should be on the question of speech. Should the left support the power of private capital that functions as a utility to censor images and opinions? Or should the left demand that the government defend the civil rights of individuals over the economic privileges of corporations? 

As noted earlier, the Civil Rights Act of 1964 made it illegal for a business owner of public accommodations to deny service on the basis of race. For the government to turn its back on the individual and allow a business to discriminate on that basis would be an act of omission on the part of a government that has a legal duty to respond to discrimination in the private sphere. Likewise, free speech is a universally recognized human right. Facebook is a functional utility, a virtual town square. Government is obliged to be (with rare exception) neutral with respect to speech so as not to oppress people by favoring some expressions and opinions over others. But a primary function of government is to protect its people from non-governmental oppression, and that must include the actions of corporations. 

The practical outcome of allowing monopolies to censor speech is this: in a world run by private    corporations, that is, corporations acting as de facto government authorities, there is no legal      guarantee of free speech. Governments upholding free speech values must concern themselves with this problem. Just as the government is in principle obliged to remain neutral with respect to the color of a person’s skin or the content of his speech, so should public accommodations maintain ideologically neutral spaces for people who patronize their businesses. The social media giants must therefore be brought under the standards of free speech enshrined in the US Bill of Rights, the ECHR, the UDHR, and the ICCPR. Governments must recognize them more as their analogs, namely public utilities and places of accommodations, open and public services or spaces operated by private entities with a legal obligation to respect the established rules of civil authority. Indeed, because of their enormous power, governments have a responsibility to hold social media platforms to democratic account. 

Marcuse also wrote in that controversial 1965 essay: “Under the rule of monopolistic media—themselves the mere instruments of economic and political power—a mentality is created for which right and wrong, true and false are predefined wherever they affect the vital interests of the society.” In a free society, if one has nothing else at all, she at least enjoys the right to receive and transmit ideas. Without this freedom she cannot develop her own mind or persuade others to adopt her attitude or opinion. As Marcuse himself observed, in a society where power limits speech, “persuasion to the opposite is all but precluded.” Without contrary notions, no genuine consensus is possible; without antitheses, the dialectic founders. Art, music, opinion, knowledge—all of these are in jeopardy when control over content is given to corporate entities, public or private. The antidote to the poison of property is to guarantee as a right to all unfettered access to the digital commons. Don’t let it be enclosed. 

Andrew Austin is on the faculty of Democracy and Justice Studies at the University of Wisconsin—Green Bay. He has published numerous articles, essays, and reviews in books, journals, and newspapers. His scholarship has appeared in such journals as Capitalism Nature Socialism, Crime, Law and Social Change, Journal of Black Studies, Journal of Poverty, and Nature, Society, and Thought. In 2018, he penned the preface to the Skyhorse edition of The Communist Manifesto.

The post Defending the Digital Commons: A Left-Libertarian Critique of Speech and Censorship in the Virtual Public Square appeared first on Project Censored.



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Is The Social Media Crackdown On Conservatives About To Get Even Worse?

ORIGINAL LINK

Authored by Michael Snyder via The American Dream blog,

Is the social media crackdown on conservatives about to get even worse? 

On Friday, representatives from Facebook, Google, Twitter, Microsoft, Snapchat and other major social media companies gathered to discuss “strategy” for the 2018 election.  Supposedly they were going to discuss how to combat the flow of “misinformation”, but we know what that means.  Every time the social media giants pledge to do more to crack down on “fake news”, more conservatives get censored.  In recent months we have witnessed the greatest purge of conservative voices in the history of the Internet, and as you will see below, even more prominent voices have been hit with bans in recent days.  Of course the social media companies are pledging that their censorship efforts are being implemented in an even-handed manner, but obviously all of their meddling has greatly enhanced the probability that Democrats will emerge victorious in November.

According to Breitbart, this gathering of social media executives was initiated by Facebook, and it was held at Twitter’s headquarters in San Francisco…

Facebook is reportedly meeting with multiple other Silicon Valley Masters of the Universe Friday to discuss how to prevent the spread of “misinformation” across their platforms ahead of the 2018 midterm elections.

Business Insider reports that Silicon Valley tech giants including Facebook, Twitter, Google, Microsoft, and Snap will be holding a meeting at Twitter headquarters in San Francisco Friday to discuss the 2018 U.S. midterm elections. According to emails obtained by BuzzFeed News, Facebook’s head of cybersecurity policy Nathaniel Gleicher invited 12 representatives from the companies to the meeting.

But this isn’t the first time a gathering like this has taken place.

In fact, we now know that executives from many of the largest tech companies met with representatives from the deep state back in May

In May, representatives from Amazon, Apple, Google, Facebook, Microsoft, Oath, Snap and Twitter met with Christopher Krebs, an undersecretary at the US Department of Homeland Security, and Mike Burham from the FBI’s foreign influence taskforce.

Since that meeting, we have seen social media censorship get much, much worse.

Could it be possible that there is a connection?

And we have also just learned that Facebook will now be rating all users (that means you too) for “trustworthiness”

The social media giant plans to assign users a reputation score that ranks them on a scale of from zero to one, according to the Washington Post.

It marks Facebook’s latest effort to stave off fake news, bot accounts and other misleading content on its site.

But the idea of a reputation score has already generated skepticism about how Facebook’s system will work, as well as criticism that it resembles China’s social credit rating system.

Yes, this is almost exactly like China’s new “social credit rating system”.  In fact, I wouldn’t be surprised if Facebook actually got that idea from them.

We are seeing the rise of a tyrannical Big Brother technocracy, and it is getting worse with each passing month.  Just check out some of the big name conservatives that have been censored by social media in recent days…

-The Hagmann Report was just slapped with a 90 day ban by YouTube.

-Verity Baptist Church was just completely banned by YouTube.

-The David Horowitz Freedom Center just had the processing of their donations blocked by Visa and Mastercard.

-“Activist Mommy” Elizabeth Johnston was recently banned by Facebook.

In addition, Facebook’s censorship of PragerU has resulted in a drop of engagement of more than 99 percent

Conservative non-profit group PragerU also recently appeared to be the latest victims of Facebook censorship, as many recent posts from the group’s Facebook paged suffered a 99.9999 percent drop in engagement based on Facebook’s own dashboard. The social media giant also pulled down two PragerU videos, which it labeled “hate speech.”

The social media giants seem determined to try to kill off the conservative movement in this country, and in my latest book I discuss how political correctness has gotten completely and utterly out of control in America.  These elitists don’t believe in free speech, because on some level they understand that their ideas would not win in a free and open marketplace of ideas.

In order to win, they must censor us.  And the more tyrannical they become, the more Americans will start turning against them.

Fortunately, there are signs that the tide is starting to turn.  Facebook’s web traffic in the U.S. is way, way down, and conservatives are beginning to abandon other repressive social media platforms as well.

The Internet is supposed to be a free and open forum where all ideas are freely discussed.  If we do not stand up now, we could lose control of the Internet forever, and we must not allow that to happen.



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Paul Craig Roberts: Watching America Collapse

ORIGINAL LINK

Authored by Paul Craig Roberts,

In the 1950s and 1960s the United States was a vibrant society. Upward mobility was strong, and the middle class expanded. During the 1970s the internal contradiction in Keynesian demand management resulted in stagflation. Reagan’s supply-side economic policy cured that. With a sound economy under him, Reagan was able to pressure the Soviet government, which was unable to solve its economic problem, to negotiate the end of the cold war.

This happy development was not welcomed by powerful forces, both in the US and Soviet Union.

In the US the powerful military/security complex was unhappy about losing the Soviet Threat, under the auspices of which its budget and power had soared. Right-wing superpatriot conservatives accused Reagan of selling out America by trusting the Soviets. The American rightwing portrayed President Reagan as the grade-two movie actor dupe of “cunning communists.”

In the Soviet government Gorbachev faced a larger problem. With trust established between the two nuclear powers, Gorbachev released the Soviet hold on Eastern Europe. Hardline elements in the Soviet Communist Party saw too much change too rapidly and concluded that Gorbachev had sold out the Soviet Union to Washington. This conclusion resulted in Gorbachev’s arrest, and the consequence of his arrest was the collapse of the Soviet Union and the Communist Party.

With communism departed, the Russians forgot all of Marx’s lessons about capitalism and naively concluded that we were all now friends. The Yeltsin government opened to American advice and, by naively accepting American advice, Russia was looted and reduced to penury. Russia under Yeltsin became an American puppet state, and the Russian people paid for it with a great reduction in their living standard.

The collapse of the Soviet Union is usually attributed to Reagan and represented as one of his victories. This is a fabrication. I was in Reagan’s government, both as Assistant Secretary of the Treasury and afterward as a member of a secret Presidential Committee with subpeona power over the CIA. Reagan told us many times that his purpose was not to win the Cold War but to end it.

He told everyone involved that all respect had to be shown to the Soviets as the purpose was to end the threat of nuclear war, not to have an insulting triumphal victory.

Unfortunately, the trust Reagan established with the Russians was betrayed by the corrupt and criminal Clinton, George W. Bush, and Obama regimes. Because of these utterly corrupt regimes, today the distrust between the US and Russia is far higher than ever existed during the long decades of the Cold War. What the criminal Clinton, Bush, and Obama regimes did was to resurrect the possibility of nuclear war that Reagan and Gorbachev had terminated.

As I have explained at length and as all available evidence supports, the attack on Trump rests on an orchestration called “Russiagate,” for which no evidence exists. It is an orchestration concocted by John Brennan, James Comey, Clapper, Rod Rosenstein, Mueller, and the Democratic National Committee. The transparent lies on which “Russiagate” is based are repeated continually by the presstitute media in an effort to create in the public mind a case for the removal of Trump from the Oval Office.

Mueller is part of the plot against Trump as is Rosenstein, the deputy attorney general who appointed Mueller special prosecutor. Both are guilty of sedition as they are active participants in an organized coup to overthrow the President of the United States. But Trump is too powerless to have them arrested and put on trial for the conspiracy against democracy that they are conducting. President Trump is making a terminable mistake in trusting to facts and truth, neither of which is respected in the scant remains of Western Civilization.

Once there was hope that information available on the Internet would serve as a countervailing power to the lies told by the Western print, TV, and NPR presstitutes. But this was a vain hope. There are some good and reliable websites, increasingly being closed down by the ruling elite. The ruling elites have most of the money and can finance most of the online voices, all of which are employed for the purpose of contradicting truth.

I received today an email from RootsAction urging me to donate money to speed Trump’s impeachment. The website has even prepared the Articles of Impeachment and proclaims that “Trump’s Fixer Says the President Engaged in a Criminal Conspiracy to Sway the 2016 Election.”

This accusation comes from one of Trump’s former lawyers, Michael Cohen. They are allegations that most defense attorneys understand is Michael Cohen’s effort to gain a light sentence for his income tax evasion by “composing,” to use the term of Harvard Law Professor Alan Dershowitz, evidence against the man Mueller really wants—President Trump.

I will be unequivocal. RootsAction, as is the NY Times, Washington Post, CNN, MSNBC, NPR and the rest of the media whores, is lying. To pay off two women, who might have been paid by the military/security complex, or Hillary & Bill Clinton, or the Democratic National Committee, to bring such charges or who simply saw an opportunity to collect a bunch of dollars from Donald Trump, is most certainly, most definitely not, as RootsAction claims, “the high crime and misdemeanor of attempting to fraudulently influence the outcome of a US presidential election. This is an impeahable offense warranting removal from office.”

Whoever advises RootsAction is a totally incompetent attorney. Moreover, to show the utter stupidity of RootsAction’s ignorant assertion, a “misdemeanor” cannot be a “high crime.” A “high crime” is a “felony.”

I have posted on my website statements from legal experts that there is nothing unlawful about paying off claimants. Corporations do it continually. It is much cheaper to pay off a false claim than to finance a court case to refute it. There is no reason whatsoever for a political candidate competing for a party’s nomination for the presidency to be distracted by fighting court cases brought to extort money from him.

Moreover, considering the dire straits in which the American population between the two coasts has been left by decades of jobs offshoring, the government’s inability to provide assistance to those millions of Americans whose living standard is dissolving because the military/security complex appropriates $1,000 billion annually from America’s resources, and the Trump public’s awareness that provoking Russia into war is in no one’s interest, RootsAction and the rest of the imbeciles have to be crazy beyond all belief to think that that anyone who voted for Trump cared if he had sexual encounters with two women. Considering the dire straits of Americans, the last thing they would do is to vote against their champion because he had sex with two women, assuming that he did.

Yet, an unsubstantiated claim by a lawyer who did not pay his income tax, a claim made for the purpose of a light sentence in exchange for providing false evidence against the President of the United States, is now, according to RootsAction, the New York Times, Washington Post, NPR, CNN, MSNBC, etc., and so on, grounds for impeaching the President of the United States who hopes to defuse the extremely dangerous tensions between Washington and Russia.

The military/security complex wants to impeach Trump because he wants peace with Russia, thus taking away the essential enemy that justifies their budget and power.

Are Americans too stupid to notice that there is not a shred of evidence of the “Russiagate” accusations? What we have in their place is income tax evasion charges, not against Trump, but against an attorney and a Republian campaign manager. More convincing charges could be brought against Democrats, but have not. The Hillary crowd of criminals has proven immune to prosecution.

No one has to approve of Trump in order to have the intelligence to see that Trump’s intention to normalize relations with Russia is the world’s main hope of continued existence. Once nuclear weapons go off, global warming will take on new meaning.

After three eight-year terms of US presidents, relations between the US and Russia stand at a far more dangerous level than ever existed during the Cold War. I know this for a fact, as I was directly involved in the Cold War.

The security that insouciant Americans find in the belief that only the US is a superpower is ignorant beyond all belief. A new book by Andrei Martyanov published by Clarity Press proves that, at best, the US is a second rate military power that can be utterly destroyed at will by Russia along with the entirety of the stupid NATO countries, every one of which is militarily impotent. In the present correlation of forces, nothing whatsoever can be done to save a square inch of the Western world if Russia ever has enough of the absurd accusations, absurd threats, absurd postering of a totally inferior military power drunk on its own ignorant hubris.

Americans are too insouciant to know it, but they are living day by day only at the mercy of Russia.



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Sunday, August 26, 2018

Eyewitnesses Prove Jacksonville Florida Shooting is a Terminally Corrupt DHS Orchestrated Hoax

ORIGINAL LINK

Eyewitnesses Prove Jacksonville Florida Shooting is a Terminally Corrupt DHS Orchestrated Hoax

Make no mistake this supposed shooting in Jacksonville, Florida, is a hoax, just like all the others. Of course, it was a lone wolf white male. And of course, as is a signature of these frauds, he is dead at the scene.

To determine the extent of the scam all a person has to do is listen to the eyewitnesses. Clearly, there is no adrenaline running here. It’s all so unemotional, so absolutely canned and staged. Anyone can realize this, and there can be no doubt.

What does anyone expect? It’s a devilish setting; gaming and gambling – a fake and contrived setting, as phony and inane as it can get.

Image result for jacksonville; florida; shooting; madden; gaming; images; injured; wounded

Watch her, listen to her: “He said he seen the lights of the gun or something.” Really, this is how you describe a mass shooting where blood is splattered about and where people are slaughtered before your eyes?

Why don’t they talk to the original person? Why use her as witness material to gain what amounts to nothing other than hearsay?

The female false witness even had the audacity to say there were children there and that they or others were “trampled.” Specifically, she said she was told there were “a lot of kids that were tampled on.” What were kids doing at the gaing bar? It gets more ludicrous at every further DHS-sponsored, pro-Israeli gun control hoax.

Now, as is also the standard, “Police say there are multiple fatalities.” The female witness seemed to well coached about one element, which is that typical hoax-style numerology element, that her source said “11 people were injured and four are dead.” This, like all her other statements, is a lie. No one died, and no one was injured.

She added, “…there were two shooters. And they think they committed suicide.” If so, where is the evidence for this? That, too, is a fabrication. Let anyone demonstrate otherwise, which, by the way, will be impossible.

Then comes the other supposed witness, R. Alaman, who says he is “still shocked and can hardly talk.” This ‘witness’ says there were “two gunmen” and that these individuals went to the back and just shooting “everyone and everyone was just running.” But, of course, he hid in the toilet, where he claims he heard “at least 20 gunshots.”

When asked, he, too, said there were “two” gunmen,” who supposedly walked into the gaming bar. “Everyone was just dropping…” With all that shooting there should be a legitimate crime scene. It would take days to document and investigate this. HAZMAT would be called in; the detectives would have their work cut out for them.

Yet, the police say there was only one gunman. What a poorly constructed hoax this was. The witnesses immediately give this away with their contrived, emotion-free story lines.

“Everyone was just running around; it was just scattered.” None of this makes any sense.

That this is a Zionist-inspired gun control hoax is obvious for anyone to realize. See the nature of the fake shooter; a Jewish player was selected, that is David Katz. Per Fox News:

David Katz, 24, of Baltimore, was believed to have fired shots during the event at the Chicago Pizza restaurant and bar in The Jacksonville Landing, Sheriff Mike Williams said at a news conference. Williams did not speak about a possible motive.

(Apparently, then, he blew his brains out; no one finds this plausible, yet, once again, this is the scheme that is perpetrated, as this eliminates any further trail or investigation)

Katz died from a self-inflicted gunshot wound after he shot multiple people, police said. In addition to the dead, 11 other people were injured — nine of them with gunshot wounds.

***

You can see it, too, in the militia, the helmeted and armed men, who walk about doing nothing other than offering camera-shoots for mass consumption. On YouTube Nodisonfo.com has been banned. See how the people react. They react to the videos as if the shooting is real, fully bamboozled, never achieving even the slightest degree of independent thinking.

So, where are the images that support this of actual injured people, even of the dead and dying? A world full of cellphones and no one has uploaded any imagery or video proof? That alone is hard proof of the nature of this as merelyyet another non-event, like Las Vegas, Orlando, the Boston Smoke Bombing Hoax, Sandy Hoax, and countless others.

Sources:

http://www.foxnews.com/us/2018/08/26/jacksonville-landing-shooter-david-katz-described-as-gamer-angry-after-losing-in-tournament.html

The post Eyewitnesses Prove Jacksonville Florida Shooting is a Terminally Corrupt DHS Orchestrated Hoax appeared first on NODISINFO.



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In "Historic Bombshell", Vatican Official Accuses Pope Francis Of Covering Up Sexual Abuse, Calls For Resignation

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In an extraordinary 11-page written testament, one which the NYT's Ross Douthat called a "truly historic bombshell", a former papal nunco, or Vatican ambassador, to the US, it does what many have called for, and offers testimony concerning "who in the hierarchy knew what, and when," about the crimes of Cardinal McCarrick. The testimony implicates a host of high-ranking churchmen. And the pope.

Annnnnd in the evening's *other* news, this document is quite possibly a truly historic bombshell in the life of the Roman Catholic Church. https://t.co/cxY3xNi76g

— Ross Douthat (@DouthatNYT) August 26, 2018

Vigano said that he told Pope Francis in 2013 about allegations of sexual abuse against a prominent priest — and that Francis took no action. Now, the former official, Archbishop Carlo Maria Vigano, 77, is calling for Francis to step down.

Vigano made the allegations in a lengthy statement that concludes with a call for Francis' resignation:

"In this extremely dramatic moment for the universal Church, he must acknowledge his mistakes and, in keeping with the proclaimed principle of zero tolerance, Pope Francis must be the first to set a good example to Cardinals and Bishops who covered up McCarrick's abuses and resign along with all of them."

The former Vatican official, who served as apostolic nuncio in Washington D.C. from 2011 to 2016, said that in the late 2000s, Benedict had “imposed on Cardinal McCarrick sanctions similar to those now imposed on him by Pope Francis” and that Viganò personally told Pope Francis about those sanctions in 2013.

Archbishop Carlo Maria Vigano, former Apostolic Nuncio to United States.

Archbishop Viganò then said in his written statement that Pope Francis “continued to cover” for McCarrick and not only did he “not take into account the sanctions that Pope Benedict had imposed on him” but also made McCarrick “his trusted counselor.”  Vigano said that the former archbishop of Washington advised the Pope to appoint a number of bishops in the United States, including Cardinals Blase Cupich of Chicago and Joseph Tobin of Newark.

CBS News spoke by telephone to Vigano, who confirmed he wrote the statement and said he was speaking out now "to combat the grave situation in the church, to protect the church and also to stop future abuse." He told CBS News producer Anna Matranga that he had no agenda and was stating facts.

Vigano, who retired in 2016 at age 75, described an exchange with Francis on June 23, 2013, shortly after he became pope, about Cardinal Theodore McCarrick, the former archbishop of Washington, D.C., who resigned last month over claims he sexually abused seminary students and an altar boy.

Vigano writes that he told Francis about the allegations: "Holy Father, I don't know if you know Cardinal McCarrick, but if you ask the Congregation for Bishops there is a dossier this thick about him. He corrupted generations of seminarians and priests and Pope Benedict ordered him to withdraw to a life of prayer and penance."

Vigano writes the pope did not respond to the statement, and McCarrick continued in his role as a public figure for the church.

"Pope Francis has repeatedly asked for total transparency in the Church. He must honestly state when he first learned about the crimes committed by McCarrick, who abused his authority with seminarians and priests. In any case, the Pope learned about it from me on June 23, 2013 and continued to cover him."

Pope Francis addressed the sex abuse scandal on Saturday in comments made in Dublin. "The failure of ecclesiastical authorities — bishops, religious superiors, priests and others — to adequately address these repugnant crimes has rightly given rise to outrage, and remains a source of pain and shame for the Catholic community," he said. "I myself share these sentiments."

Pope Francis accepted McCarrick's resignation on July 28. McCarrick has maintained his innocence, but this month, a Pennsylvania grand jury issued a report that said more than 300 priests abused more than 1,000 children, and likely thousands more, over seven decades.

Father Boniface Ramsey of New York told CBS News this month that he repeatedly complained about McCarrick and heard about his disturbing behavior as early as 1986.

Nearly 100 of the accused clergy are from the Pittsburgh diocese alone, where Donald Wuerl, the current cardinal of Washington, D.C., was the bishop for 18 years.

In his statement, Vigano wrote that Wuerl also knew about McCarrick. "His recent statements that he knew nothing about it … are absolutely laughable. The cardinal lies shamelessly," Vigano wrote.  

In an interview with CBS News correspondent Nikki Battiste before the grand jury report, Wuerl said that he was quick to deal with allegations and that he was not aware of any rumors about McCarrick.

"If there were allegations, we dealt with them immediately," he said. "All the time that [McCarrick] was here and certainly all the time that I've been here, there was never any news. If I could tell you no one ever came to me and said this person did this to me. No one. No one. And remember, we were just talking about Pittsburgh. I was in Pittsburgh...we weren't following the rumors of different parts of the country."

Wuerl also suggested to CBS News that McCarrick had paid a price for his actions. "He has resigned and his resignation has been accepted. And he's been told to stay in seclusion...that's a pretty substantial penalty to be paying."

Vigano's statement calls on the church to take action.

"To restore the beauty of holiness to the face of the Bride of Christ — so tremendously disfigured by so many abominable crimes, if we truly want to free the Church from the fetid swamp into which she has fallen, we must have the courage to tear down the culture of secrecy and publicly confess the truths that we have kept hidden."

As Douthat concludes, "This is either an extraordinary and vicious slander or an act of revelation that should be the undoing of just about every figure mentioned in its pages. It has an apocalyptic feel either way."

His full testimony is below (pdf link)

Testimonyxcmvx Xenglish Corrected Final Version by Zerohedge on Scribd



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